The Financial Sector Conduct Authority (FSCA) has raised the alarm over fraudulent investment platforms exploiting deepfake technology to manipulate unsuspecting investors.
These schemes falsely depict prominent South Africans, including Dr Patrice Motsepe, Leanne Manas, President Cyril Ramaphosa, and Deputy President Paul Mashatile, all endorsing unregulated financial services.
According to the FSCA, the deepfake investment scams lure individuals with promises of daily returns of up to R17 000 on an initial investment of R4 500. Highly convincing AI-generated videos falsely present Motsepe supporting these platforms, while Mashatile appears to guarantee investors’ funds and returns. Similarly, promotional content featuring Ramaphosa has been used to boost credibility and attract potential investors.
However, the FSCA categorically denies any association between these individuals and the fraudulent platforms, emphasising that these claims are entirely fabricated. The authority further notes that the operators behind these deceptive schemes have failed to respond to official inquiries, heightening concerns over their legitimacy.
Public urged to verify financial services
In response to the rising threat of deepfake-driven financial fraud, the FSCA urges the public to exercise extreme caution when evaluating investment opportunities.
“We encourage consumers to thoroughly investigate the credentials of anyone offering financial services,” an FSCA spokesperson stated. “If an individual or entity lacks official authorisation, engaging with them poses a significant risk.”
Key verification steps for investors
To safeguard against fraudulent investments, the FSCA advises the public to verify the following before committing funds:
- FSCA Authorisation: Confirm that the individual or organisation is officially licensed to provide financial products and services.
- Qualified Financial Advice: Ensure the person advising on investments is authorised for the specific risk category of the products they promote.
- FSP Number Authentication: Cross-check the entity’s Financial Services Provider (FSP) number with the FSCA database to verify legitimacy.
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